Diodes reports Q3 EPS 37c, consensus 38c

Reports Q3 revenue $392.2M, consensus $392.2M. Commenting on the results, Gary Yu, President and CEO of Diodes (DIOD), stated, “Revenue in the quarter increased 7% sequentially and 12% year-over-year driven by strong demand across the general computing market, including for AI-related server applications as well as data center and edge computing. Our global point of sales (POS) increased the strongest in Asia followed by North America. Additionally, our channel inventory is at healthy levels, decreasing again this quarter in terms of dollars and weeks with overall inventory dollars decreasing over 25% from peak levels. Even though the rate of recovery in the automotive and industrial markets continues to be slower than expected, revenue increased both sequentially and year-over-year in both of these end markets. When coupled with the computing market growing the strongest along with consumer also increasing sequentially, product mix unfavorably weighed on gross margin during the quarter. Future margin expansion will be driven by ongoing improvements in product mix as the pace of recovery accelerates in our higher-margin automotive and industrial end markets combined with increased new product introductions in all target markets as well as improved loading across our manufacturing facilities.”